Effect of regulation FD on disclosures of information by firms Article

cited authors

  • Lawrence, ER; Karels, G; Prakash, A; Shankar, S

fiu authors

abstract

  • Critics of Regulation Fair Disclosure (FD) have argued that its enactment would result in not only a decrease in asymmetric information but a decrease in total amount of information disclosed by firms. We investigate this conjecture and find (1) no change in market risk premium, (2) an increase in risk premiums for size and (3) an increase in the distress risk premium in the post-FD period. These findings lead us to conclude that in the post-FD period there is a significant decrease in the dissemination of (1) overall information by small firms and (2) unfavourable information by firms in general. © 2011 Taylor & Francis.

publication date

  • January 1, 2011

Digital Object Identifier (DOI)

start page

  • 979

end page

  • 996

volume

  • 21

issue

  • 13